Sometimes it works and sometimes it doesn't
I got a xbox 360 for christmas so it does not really matter anymore, I can still play some of my good games.
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Here is a link to a list of the Xbox error codes, explanations and some possible fixes for some of them. http://forums.afterdawn.com/thread_view.cfm/210562
like Lemonie said, fix the IDE cable it could also be that your Xbox harddrive needs to be replaces
It's a HDD problem. You could take it apart and try fiddling with the ribbon, if that fails think about replacing the drive. L